What is a qualitative risk assessment?

A qualitative risk assessment evaluates risks based on subjective judgment rather than quantitative analysis. This approach is particularly useful when precise numerical data is not available or when assessing risks that are difficult to quantify. It often incorporates expert opinions, stakeholder feedback, and personal experiences to gauge the likelihood and impact of various risks. By focusing on the perceptions and prioritization of risks, organizations can effectively identify potential challenges and make informed decisions about risk management strategies.

This type of assessment allows for a more nuanced understanding of risks in contexts where numerical values may not capture the full picture. It also facilitates a discussion around risks that might be highly significant but difficult to quantify, emphasizing the importance of considering both qualitative aspects and organizational context.